The Hollywood trades are reporting today that DreamWorks, a subsidiary of Paramount, is dropping all HD DVD projects as of March 4, 2008. This comes as no surprise to those following the mass exodus from HD DVD to Blu-ray by studios and electronics manufacturers alike. However, the pulling of the anticipated Bee Movie from the release schedule is somewhat unexpected, as other studios have been staying consistent with their HD DVD releases, gently euthanizing the format.

DreamWorks was a strong supporter of HD DVD in the format war and had
planned a large ad campaign along with Toshiba (exclusively and
inexplicably only in print media) to promote the release of the
studio’s films on the HD DVD format. It's safe to assume that campaign
will never run or will run to promote rehashed versions of the films on
Blu-ray. The remastering and disc authoring process to take content
made for HD DVD to Blu-ray isn’t amazingly difficult. Expect many of
DreamWork’s best titles from (or that were expected on) HD DVD to be
re-released on Blu-ray sooner than later.